Mistake
#1 – Hiring the Wrong Mortgage Company
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| Photo by Lance Cpl. David Bessey |
Some online mortgage companies have been found to provide incorrect closing
costs because they’re out-of-state and unfamiliar with localized closing costs
such as transfer taxes. Worse, there are mortgage companies that charge
an application fee on a credit card and then fail to deliver a mortgage on time
for your closing.
Additionally,
while many mortgage companies advertise that they assist veterans and can write
VA loans, not all lenders understand the process the same.
Ask friends, relatives and your Realtor which mortgage companies have
consistently provided good service and truly understand the VA lending process.
Our team at Century 21 Keim Realtors can provide you with a list of mortgage
companies we’ve worked with locally. Call us at 800-648-4421 for a no
obligation list.
Mistake #2 – Thinking VA Loans Will Cover All Costs
When you
are purchasing a home with a VA Home Loan, it is important to remember that
while the VA will help you with a great deal of the home buying process, it
will not cover everything. In some
cases, a buyer might purchase with no money out of pocket, but depending on
negotiations with the home seller, some VA buyers may have to pay some closing
costs. Consult a Realtor with experience
in selling properties with a VA mortgage.
Additionally,
the VA is not responsible for or cannot guarantee that there are not any
defects found in the house that are in need of repair. The VA will conduct an
appraisal of the property, but this is not an accurate inspection. This
appraisal is not a close look at the condition of everything in the home or on
the land of the property. So, if you find that termites have attacked the
house, or your water pipe suddenly bursts, the VA cannot be held responsible.
Mistake #2
– Neglecting to Have a Home Inspection
Would you buy an old used car without having it thoroughly inspected by someone
you know and trust? A home may have issues which will cost far more than
any car repair, and purchasing a home may be the most expensive investment you
make in your lifetime.
Any home may have hidden defects that could cost thousands of dollars to
repair. A failing septic system may cost an owner tens of thousands of
dollars. Mold problems may create health issues for you or your
children. Radon gas may cause cancer. Lead paint, water penetration
and hundreds of other issues may be avoided when they are discovered by a home
inspector before you buy the home.
Spending a few hundred dollars to investigate potential defects or expensive
repairs in a home could literally save you many thousands in the long
run. If you’re planning to purchase a home and would like a free list of
professional, licensed home inspectors, call our team at Century 21 Keim
Realtors.
Mistake #3 - Limiting Your Search
The majority of buyers have their
hearts set on a particular neighborhood or city. But why limit your search
area? Some buyers want to live close to their place of occupation, or keep
their children in a specific school district. Regardless, it’s worth checking
out other areas. It’s possible for your child to excel in another school
district, and the extra time that it takes to commute to work may present the
opportunity to decompress before arriving home.
Mistake #4 - Not Visiting the Property Multiple Times
There’s
nothing wrong with bidding on the first house that you see. However, plan to
visit the property at least twice before submitting your offer. If a seller is
motivated and ready to sell, he or she may rush the process or try to force you
to make a hasty decision. But remember, once you sign the closing papers,
there’s no turning back.
Drive
through and check out the neighborhood during the weekends and evenings. Are
the neighbors rowdy? Is there loud music? Are the children playing in the
streets or being noisy? Checking out the neighborhood when the majority of the
residents are home can help you determine whether the area is a good fit for
you and your family.
Mistake #5 – Not Doing the Proper Research
Mistake #6 – Not Hiring a Buyer’s Agent
Do you realize that buyer representation is free with firms like Century 21
Keim Realtors? You get professional, personal representation in the
purchase of a home without paying a dime.
Why is that important? Why can’t you simply call the listing agent for
each property you might want to view? Many home buyers don’t realize that
the listing agent for the property is likely to represent the best interests of
the home seller, not you. That means their fiduciary responsibility is to
the seller. They have to disclose everything you tell them and they have
an obligation to get you to pay the highest price possible for the home.
A buyer’s agent represents your interests instead of the sellers, and
you don’t pay anything for that service.
Mistake #7
– Working with Several Realtors at the Same Time
Mistake #8 - Not Budgeting for
Repairs and Maintenance
Many new
homebuyers think they should try to get the most expensive home that they can
afford, but there are other expenses that should be budgeted for -- like
repairing the furnace or roof. Home ownership comes with a different set of
expenses than just renting, and new buyers need to factor in things like higher
monthly utility bills and the cost of upkeep on older homes.
Mistake #9 – Don’t Make Decisions Emotionally
Emotional
mistakes are common among homebuyers, who overpay for their "dream
homes" because they let feelings cloud their judgment, or back away from a
great opportunity because they get into conflict with the seller.
But
buyers shouldn't beat themselves up for getting emotional. Buying a home is
often the biggest purchase a person will make. Buyers should be aware of emotional mistakes
many of their peers make.
